Uploaded June 2026 | Updated September 2026, 1 week ago
Money didn’t begin with governments.
During World War II, economist R. A. Radford observed life inside a prisoner-of-war camp. At first, prisoners relied on barter. Trade only worked when both sides wanted exactly what the other had.
Economists call this the double coincidence of wants.
Then something changed.
Cigarettes started being accepted by almost everyone, even by those who didn’t smoke. Not because they were useful to them directly, but because they knew others would accept them later.
In that moment, cigarettes became a medium of exchange.
No central authority designed it. No policy imposed it.
It emerged from repeated interactions, as people searched for easier ways to trade.
#economics #history #money #wwii #FEE #education #marketeconomy
Money didn’t begin with governments.
During World War II, economist R. A. Radford observed life inside a prisoner-of-war camp. At first, prisoners relied on barter. Trade only worked when both sides wanted exactly what the other had.
Economists call this the double coincidence of wants.
Then something changed.
Cigarettes started being accepted by almost everyone, even by those who didn’t smoke. Not because they were useful to them directly, but because they knew others would accept them later.
In that moment, cigarettes became a medium of exchange.
No central authority designed it. No policy imposed it.
It emerged from repeated interactions, as people searched for easier ways to trade.
#economics #history #money #wwii #FEE #education #marketeconomy
